Though it’s barely mentioned by company executives, Netflix’s by-mail disc rental business remains three times as profitable as its streaming operation. Netflix CFO David Wells believes that the DVD side of things is so-well entrenched that it could lose 7/8 of its subscribers and remain profitable.
During yesterday’s first quarter fiscal call, Wells said that Netflix needs just a million DVD subscribers (it currently has 8 million) to keep that business profitable. Wells said the following regarding the contribution of the DVD business to Netflix’s margins:
“Given that we’ve got a large investment in equipment that we won’t have to continue to invest in our content library and our DVD content library, we feel pretty good about our ability to maintain those margins going forward,”
Are you still subscribing to Netflix’s DVD service? Will you continue to do so?
[via Home Media Magazine]
I have Netflix three out at a time. And the Online deal also….Yes I will keep the DVD deal. As I do like to have them in my hand at times. And Where I am at. I have a great turn around time. Send one in Mon. They have it Tue AM.
They send me a new on Tue. I have it Wed. I send one in Mom, Tue, Wed. I have a new one Wed, Thr, Fri. And then I start over. I get 12-16 DVDs in the mail every month. And have the Online when I like…
I have everything I need under $30.00 a month. I even dropped the Cable TV.. Nothing but crap on now.. And doing just great!
Are you still subscribing to Netflix’s DVD service? Will you continue to do so?
Like DanoFive0, I USED to subscribe monthly, but now only once or twice a year.
Once the catalog items are exhausted, unless like Blockbuster, Netflix carries the special editions or extended versions, why bother with disks when streaming is more convenient.
50% off code 6XM6D2XT
I’m glad to read this. I’m on the 3-at-a-time plan and have been very happy with it. Made rare use of streaming back when it was free, and given the modest use I made of it, it would have been foolish to pay for it. I am a little concerned about the small erosion of DVD titles, but generally I get to see what I want, and the turn-around time in terms of returning and getting new discs is usually excellent. I hope to be a DVD customer for a long time to come.
And while we’re at it, there’s a listing on ebay for five Walt Disney titles (including Dumbo and The Little Mermaid), and the starting bid is only $2,250.00! I’m glad that Moom has faith in old technology, and I know that he’s enjoying his collection of typewriters. I’m going to sell my copy of Hopalong Cassidy on 8mm to him, and I’m going to be rich!
Everything I wrote about this wonderful person Moom is wrong. I wish there were a way that I could retract my hurtful comments. Please forgive me Moom. Long live your precious DVDs!